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Simplified legislationPurposeThis document simplifies the new regulations from the Automotive Business Regulation that will impact industryand consumers that were added to the Consumer Protection Act effective Oct. 31, 2018. The purpose of thedocument is to provide a clear understanding of the new regulations in plain language for industry to know theirresponsibilities and for consumers to know their rights. This guide is not a substitute for legal advice and is notdesigned as a substitute for advice from qualified independent legal counsel. This guide is not intended to bean exhaustive list of applicable legislation.Table of Contents (click on the section to be taken directly to new laws regarding the topic)Code of Conduct - Advertising . 2Regulatory board . 3Vehicle history information . 4Bill of sale . 6Receipt of information . 9Deposit agreement . 10Liens . 11Estimate . 12Authorization of work. 13Authorization not in writing . 14AMVIC Simplified ABR legislation 2018 - 1
New legislation added to the Automotive Business Regulation (Advertising)Code of Conduct - AdvertisingLegislationSection 11(2)(n) does not use false, misleadingor deceptive statements, andSection 11(2)(o) does not advertise a specificvehicle for sale if more than 14 days haveelapsed since the vehicle was sold.SimplifiedDo not use false, misleading or deceptivestatements in any advertisements.The automotive business must remove alladvertisements for a specific vehicle within 14days once it has been sold.AMVIC Simplified ABR legislation 2018 - 2
New legislation replaces Section 24 of the Automotive Business Regulation (Regulatory Board – AMVIC)Regulatory boardLegislationSection 24, 24.01, 24.02, 24.1, 24.2, 24.3, 24.31,24.32, 24.4, 24.5, 24.6, 24.7, 24.71, 24.8, 24.9,24.91, 24.92.SimplifiedNew legislation sets new requirements andconditions for becoming a board member and theoverall responsibilities of the board in relation toAMVIC. The new legislation also requires theAMVIC board to have 13 directors: seven frompublic and six from industry; with one of the publicdirectors as the board chair as designated by theMinister.AMVIC Simplified ABR legislation 2018 - 3
New legislation added to the Automotive Business Regulation (Part 2.1 – Automotive Sales and Repairs)Vehicle history informationLegislation31.1 (1) A business operator engaged inautomotive sales must disclose the followinginformation in accordance with subsection (2),on the basis of information the businessoperator knew or ought to have known:(a) whether the vehicle has been bought back bythe manufacturer under the Canadian MotorVehicle Arbitration Plan;(b) whether the vehicle has sustained damagecaused by fire;(c) whether the vehicle has sustained damagecaused by immersion in liquid to at least thelevel of the interior floorboards;(d) whether the vehicle has been used as apolice car or an emergency vehicle;(e) whether the vehicle has been used as a taxicab or a limousine;(f) whether the vehicle has been previouslyowned by a rental vehicle business or used as arental vehicle on a daily or other short-termbasis;(g) whether the vehicle has, at any time, beenassigned a status in one of the followingcategories under the Vehicle InspectionRegulation (AR 211/2006) or an equivalentstatus under the laws of another jurisdiction:(i)salvage motor vehicle;(ii)non-repairable motor vehicle;(iii)unsafe motor vehicle;SimplifiedThe purpose of disclosing this information is forthe business to be as transparent as possibleabout the history of the vehicle and for consumersto be able to access the history information atvarious times throughout the buying process.Disclose if the vehicle was bought back throughthe Canadian Motor Vehicle Arbitration Plan(CAMVAP) by the manufacturer at any point.Disclose if the vehicle was damaged as a result offire.Disclose if the vehicle was damaged as a result offlooding.Disclose if the vehicle was a police car or anemergency vehicle such as a fire vehicle orambulance.Disclose if the vehicle was a taxi or limousine.Disclose if the vehicle was either owned by acompany that provided rental vehicles, or thevehicle itself was used a rental.Disclose if the vehicle’s status was declared:(i)Salvage – also known as written-off. Itis a motor vehicle that can be i)A motor vehicle damaged to theextent that it is non-repairable andcannot be registered. These vehiclescan be sold for scrap and dismantledfor parts only(www.transportation.alberta.ca/591.htm).(iii)A vehicle reported by a certifiedtechnician to be unsafe. A certifiedtechnician cannot remove an unsafevehicle from the road. Thisresponsibility lies solely with a peaceofficer under Section 66 of the TrafficSafety ActAMVIC Simplified ABR legislation 2018 - 4
(www.transportation.alberta.ca/2819.htm).If the vehicle’s status was changed due to repairsor a rebuild, it still must be disclosed if it wasformerly any of the above statuses mentioned.(h) whether the vehicle has been damaged in anincident or collision where the total cost ofrepairs fixing the damage exceeded 3000 and,if the repairs were carried out by the businessoperator, the total cost of the repairs;(i) whether the vehicle was registered in anyjurisdiction other than Alberta immediatelybefore it was acquired by the business operatorand, if so,(i)the name of the jurisdiction in which thevehicle was previously registered,(ii)whether the vehicle was required to beinspected prior to registration in Alberta, and(iii)whether the vehicle passed or failed anyrequired inspections.31.1(2) The business operator must disclose theinformation required under subsection (1) in aclear and legible manner(a)in any online advertisement for thevehicle,(b)on any sales tag affixed to the vehicle,and(c)in writing to the consumer beforepurchase.If the vehicle comes from out-of-province or outof-Canada, and was at one point declared any ofthe terms used above or similar definitions, thismust also be disclosed to the consumer.Disclose if the vehicle was in need of repairs thatcost more than 3,000 including parts and labouras a result of an incident or collision, and if thoserepairs were completed by the business operator,the total cost to complete them.Disclose if the vehicle was registered in a differentprovince or a different country immediatelybefore the business received it with:(i)The name of the province/country,(ii)all inspections that were requiredbefore it can be registered in Alberta,(iii)and if the vehicle passed or failed anyof the required inspections.All the information that is required to be disclosedas mentioned above from Section 31.1(1)(a) to (i)must be disclosed in a clear and legible manner in:(a) Any online advertisements for the vehicle,(b) On any sales tags or window stickers onthe vehicle and(c) In writing to the consumer before theconsumer enters into a purchase contract.This is to ensure the consumer has access to thevehicle’s history information at various timesthroughout the buying process. From first viewingan advertisement of the vehicle, to seeing thevehicle in person, to reviewing a document thatdiscloses all information before the consumerdecides to buy the vehicle.AMVIC Simplified ABR legislation 2018 - 5
Bill of saleLegislation31.2(1) A business operator engaged inautomotive sales must use a bill of sale thatincludes the following:(a) the name and address of the consumer;SimplifiedA bill of sale must be used that includes thefollowing:(a) consumer’s name and address;(b) the number of the government-issuedidentification that the business operator uses toconfirm the identity of the consumer;(b) the number found on the governmentissued ID such as a driver’s licence orpassport the business used to confirm theidentity of the buyer;(c) the name, business address and licencenumber of the business operator;(c) the name, business address and AMVIClicence number of the business selling thevehicle;(d) if a salesperson is acting on behalf of thebusiness operator, the name and registrationnumber of the salesperson;(e) the make, model and model year of thevehicle;(d) name and AMVIC-registration number ofthe salesperson selling the vehicle;(e) the make, model and year of the vehicle;(f) the colour and body type of the vehicle;(f) the colour and body type of the vehicle;(g) the vehicle identification number of thevehicle;(g) the VIN (taken directly off the vehicle andnot from any other documents to ensureaccuracy);(h) the date that the bill of sale is entered into;(i) the date that the vehicle is to be delivered tothe consumer;(j) an itemized list of all applicable fees andcharges the consumer is to pay, including,without limitation:(i)charges for transportation of thevehicle;(h) the date the bill of sale is entered into;(i) the date the vehicle will be delivered tothe consumer.A list of all fees and charges that the consumermust pay must be included on the bill of sale. Thislist must include without limitation:(i) any delivery/freight/transportationcharges;(ii)fees for inspections;(ii) any fees for any inspections done on thevehicle;(iii)fees for licensing;(iii) any fees for licensing the vehicle;(iv)charges for warranties;(v)taxes or levies, including GST;(k) the timing for payment by the consumer ofthe fees and charges under clause (j);(iv) any charges for warranties the consumeragreed to;(v) all taxes and levies, including GST(k) Declare the timing of payment for the fees andchanges listed in clause (j).AMVIC Simplified ABR legislation 2018 - 6
(l) an itemized list of the costs of all extraequipment and options sold to the consumer inconnection with the vehicle or installed on thevehicle at the time of sale;(m) the total cost of the vehicle, which mustinclude the fees, charges and costs listed underclauses (j) and (I);(n) the down payment or deposit paid by theconsumer, if any, and the balance remaining tobe paid;A list of all the extra equipment and options, andwhat each one costs that was sold to theconsumer.(o) if the consumer is trading in another vehicleto the business operator in connection with thepurchase of the vehicle,(i)information about the vehicle beingtraded in, andIf the consumer is doing a trade-in, the bill of salemust include:The total cost of the vehicle including all fees,charges and costs of the extra equipment andoptions listed.Include the down payment or deposit amount theconsumer gave if any, and the balance remainingafter.(i) information about the traded invehicle to properly identify it;(ii)the value of the trade-in allowanceincorporated into the cost of purchase of thevehicle;(p) the balance of any outstanding loan that isincorporated into the cost of purchase of thevehicle;(q) if, in connection with the purchase of thevehicle, the business operator enters into acredit agreement with the consumer or arrangesa credit agreement for the consumer, thedisclosure statement required under Part 9 ofthe Act;(r) an itemized list of any items or inducementsthe business operator agrees to provide with thevehicle at no extra charge;(s) the odometer reading of the vehicle at thetime the bill of sale is entered into, if the vehiclehas an odometer and the odometer reading isavailable to the business operator;(t) the maximum odometer reading of thevehicle at the time of delivery to the consumer ifthe vehicle has an odometer and(ii) the value of the trade-in allowanceincorporated into the cost of purchaseof the vehicle being sold to theconsumer.If the trade-in vehicle still has a loan on it, then theremaining loan balance incorporated into the costof purchase must be stated on the bill of sale.If the business enters into a credit agreement withthe consumer, a disclosure statement regardingthe credit agreement must be provided on orattached to the bill of sale.If the business made any promises, offers orinducements at no extra charge, each individualpromise, offer and inducement must be listed onthe bill of sale.As long as the vehicle has an odometer and thebusiness operator is able to read the odometer,then the bill of sale must state the odometerreading at the time the purchase is entered to.If the vehicle has an odometer but(i)the business cannot physically readthe odometer because the vehicle isAMVIC Simplified ABR legislation 2018 - 7
(i)the odometer reading is not available tothe business operator at the time the bill of saleis entered into, ornot physically there at the time the billof sale is entered into, then writedown the maximum odometer readingon the bill of sale, or(ii)(ii)the vehicle is a new, specificallyidentified vehicle;(u) any mechanical fitness assessment that hasbeen issued under the Vehicle InspectionRegulation (AR 211/2006);(v) any disclosure statement or documentationrespecting a vehicle's previous use, history orcondition, including disclosure statements ordocumentation required under the laws ofanother jurisdiction;(w) a declaration that the business operator hasdisclosed to the consumer the informationrequired under section 31.1.31.2(2) The business operator must ensure thatall restrictions, limitations and conditionsimposed on the consumer under the bill of saleare stated in a clear and comprehensiblemanner.the vehicle is brand new and notphysically on location, specificallyidentify on the bill of the sale that thevehicle is new.Also if the vehicle is being delivered to theconsumer instead of the consumer coming to thebusiness location to pick it up, include the addedkilometers to the maximum odometer reading.Attach a copy of the current Mechanical FitnessAssessment that was issued on the vehicle.Attach copies of any reports, documents anddisclosure statements regarding the previous use,history or condition of the vehicle including thoserequired under the laws of another province orcountry.The bill of sale must include a declaration that allthe vehicle history information and conditionsfrom Section 31.1 were provided to the consumer.All restrictions, limitations and conditions thebusiness has the right to enforce in the bill of salemust be clear and legible.AMVIC Simplified ABR legislation 2018 - 8
Receipt of informationLegislation31.3 A business operator engaged in automotivesales must not enter into a bill of sale with aconsumer unless the business operator hasobtained written confirmation from theconsumer that the consumer has received theinformation required under section 31.1.SimplifiedBefore entering into a bill of sale, the businessmust obtain a written declaration from theconsumer acknowledging receipt of theinformation required in Section 31.1. – Vehiclehistory information.AMVIC Simplified ABR legislation 2018 - 9
Deposit agreementLegislation31.4 If the Council sets the form and content ofa deposit agreement, a business operatorengaged in automotive sales shall use thatdeposit agreement.SimplifiedAMVIC has the authority to create a depositagreement and if it does so, then it must be usedby all business operators engaged in automotivesales.AMVIC Simplified ABR legislation 2018 - 10
LiensLegislation31.5 If a business operator engaged inautomotive sales knows that a vehicle is subjectto a lien, the business operator must, within 7days of the date that the business operator sellsthe vehicle, pay the amount owing under thelien to the lienholder.SimplifiedThe business must pay out all liens on a vehiclewithin seven days after it is sold to a consumer.AMVIC Simplified ABR legislation 2018 - 11
EstimateLegislation31.6(1) A business operator engaged inautomotive repairs must, on request from theconsumer, provide an estimate for theinstallation of parts or equipment in or on avehicle or the repair or service of a vehicle.31.6(2) An estimate under subsection (l) mustbe in writing and, subject to subsection (3), mustcontain the following information:SimplifiedIf the consumer requests an estimate beforestarting any service or repair work to their vehicle,the business must provide an estimate.If a consumer requests an estimate, the businessoperator must provide a written estimate thatincludes:(a)a description of the proposed work;(b)the estimated total cost of the proposedwork, including labour and parts or equipment.(a) a description on the proposed work;31.6 (3) If the information in subsection (2)cannot be provided because diagnostic work isrequired, the estimate must state the estimatedmaximum cost of the diagnostic work.If an estimate can’t be provided because thebusiness has to perform diagnostic work first onthe vehicle, then the estimate must state theestimated maximum cost of the diagnostic work.(b) the estimated total cost of the proposedwork, including the cost of labour, partsand equipment.AMVIC Simplified ABR legislation 2018 - 12
Authorization of workLegislation31.7(1) A business operator engaged inautomotive repairs must not install parts orequipment in or on a vehicle or repair or servicea vehicle unless the consumer has providedauthorization.31.7(2) An authorization under subsection (1)must be provided in writing, subject to section31.8.31.7 (3) An authorization must contain thefollowing information:(a)the name of the consumer, or theconsumer's agent, giving authorization;(b)the date of authorization;(c)a description of the work that theconsumer, or the consumer's agent, authorizesto be carried out;(d)the estimated total cost of the workdescribed in clause (c) and confirmation that theconsumer, or the consumer's agent, authorizesthat cost.SimplifiedThe business must obtain authorization from theconsumer before any repair work or servicingbegins.The authorization in Section 31.7(1) must be inwriting, unless Section 31.8 applies.The written authorization obtained must have thefollowing:(a) the name of the consumer or the personacting on their behalf that is givingauthorization;(b) the date the authorization is given;(c) a description of the work that theconsumer or the person acting on theirbehalf is authorizing to;(d) the estimated total cost of the workdescribed above and confirmation fromthe consumer or the person acting ontheir behalf to authorize the work.AMVIC Simplified ABR legislation 2018 - 13
Authorization not in writingLegislation31.8 An authorization of work may be in a formother than in writing if the business operatorrecords the following information in writing:(a)the information required under section31.7(3);(b)the time at which authorization is given;(c)the method by which authorization isgiven.SimplifiedIf the business cannot get authorization in writing,then the business must record the authorizationinformation required under Section 31.7(3) as wellas the time the authorization was given and how itwas given (via email, phone etc.) from theconsumer.AMVIC Simplified ABR legislation 2018 - 14
AMVIC Simplified ABR legislation 2018 - 4 New legislation added to the Automotive Business Regulation (Part 2.1 - Automotive Sales and Repairs) Vehicle history information Legislation Simplified 31.1 (1) A business operator engaged in automotive sales must disclose the following information in accordance with subsection (2),
